ANNEXURE - 3
Salient Features of the Right to fair compensation and Transparency in Land
Acquisition, Resettlement and Rehabilitation Act, 2013
Scope of the LARRA, 2013: Both LA and R&R Provisions will apply when:
1. Government acquires land for its own use, hold and control
2. Government acquires land with the ultimate purpose to transfer it for the use of private companies
for stated public purpose
3. Government acquires land for Public Private Partnership Projects
Note I: Public purpose for 2. & 3. above, once stated, cannot be changed
Note II:
- Land Acquisition under 2. can take place provided that the consent of 80% of the
affected families is obtained.
Land Acquisition under 3. can take place provided consent of 70 % of affected
families is obtained.
Only R&R provisions will apply when:
 Private companies purchase land for a project, and the same exceeds the area
thresholds set by the State Governments for such purchase
Salient Features of LA, R & R, 2013
Definition of Public Purpose
1. Land for strategic purposes relating to armed forces, national security or defense, police,
safety of the people;
2.Land for infrastructure:(i)items listed in circular of Government of India, Department of
Economic Affairs (Infrastructure Section) number 13/6/2009-INF dated the 27th March,
2012 excluding private hospitals, private educational institutions and private hotels
(ii)projects involving agro-processing, supply of inputs to agriculture, warehousing, cold
storage facilities, marketing infrastructure for agriculture and allied activities such dairy,
fisheries, and meat processing as set up or owned by the appropriate(iii)project for industrial
corridors or mining activities, national investment and manufacturing zones as designated in
the national manufacturing Policy;(iv)project for water harvesting and water conservation
structures, sanitation;(v)project for Government administered and government aided
educational and research schemes or institutions;(vi)project for sports, health care, tourism,
transportation, space programme, (vii) Any infrastructure facility as may be notified in this
regard by the Central Government and after tabling of such notification in Parliament;
3. Land for the project affected people
MSPCL
Page 1
4. Land for planned development or improvement of village or urban sites or for residential
purpose to weaker sections;
5. Land for persons residing in areas affected by natural calamities or displaced
Urgency Clause:
The Urgency Clause can only be invoked in the following cases:
1. National defense and security purposes
2. Resettlement & Rehabilitation needs in the event of natural calamities such as floods or
earthquakes
In case there is doubled is placement of any individual they will receive an additional compensation
of up to 75% of the compensation already provided for under the new law.
Definition of ‘Affected Families’

Land Owners:
1. Family or company whose land/other immovable properties have been acquired;
2. Those who are assigned land by the Governments under various schemes;
3. Right holders under the Forest Rights Act, 2006

Livelihood Losers:
1. Over the last three years, a family whose livelihood is primarily dependent on the
land being acquired, including agriculture labourers, tenants or sharecroppers
2.Over the last three years, families which are dependent on forests or waterbodies for
their livelihoods when these are acquired; including forest gatherers, hunters, fisher
folk and boatmen
3.Over the last three years, any family whose livelihood is dependent primarily on the
land being acquired in the urban areas or any family who is residing on the land being
acquired in the urban areas
Safeguarding Food Security
1. Multi-crop irrigated land will not be acquired except as a demonstrably last resort measure, which
in no case should lead to acquisition of more than such limits as have been set by the State
Government under this law.
2. Wherever multi-crop irrigated land is acquired an equivalent area of cultivable wasteland shall be
developed for agricultural purposes (or an amount equivalent to the value of the land acquired shall
MSPCL
Page 2
be deposited with the appropriate Government for investment in agriculture for enhancing foodsecurity).
3. States are also required to set a limit on the area of agricultural land that can be acquired in any
given district.
1. and 2. above shall not apply in the case of linear projects (such as railways, highways, major
district roads, power lines, and irrigation canals)
Minimum Compensation for Land Acquisition
A Comprehensive Compensation Package (First Schedule)
1. Market value of the land:
a) the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale
deeds in the area, where the land is situated; or
b) the average of the sale price for similar type of land situated in the immediate areas adjoining the
land being acquired, ascertained from fifty per cent of the sale deeds registered during the preceding
three years, where higher price has been paid; or whichever is higher: provided that the market
value so calculated for rural areas shall be multiplied by a multiplier factor of up to ‘two’.
2. Value of the assets attached to land: Building/Trees/Wells/Crop etc as valued by relevant govt.
authority;
Total compensation = 1+2. ,
3. Solatium: 100% of total compensation
4. Where land is acquired for urbanisation, 20% of the developed land will be reserved and offered to
land owning project affected families, in proportion to their land acquired and at a price equal to cost
of acquisition and the cost of development.
In case the project affected family wishes to avail of this offer, an equivalent amount will be
deducted from the land acquisition compensation package payable to it .
5. The Company for whom land is being acquired may offer shares limited to 25% of the
Compensation amount.
In case the project affected family wishes to avail of this offer, an equivalent amount will be
deducted from the land acquisition compensation package payable to it.
Minimum Compensation for Land
Illustrative Sliding Scale:
MSPCL
Page 3
The multiplier factor will gradually rise from 1 to 2 as we move away from Urban locations into
Rural areas
The Precise slabs will be left to respective St. Govts.
Illustrative Sliding Scale
(Precise Scale to be determined by each St. Govt.)
Radial Distance from
Multiplier Factor
Urban area (Km)
0 -10
1.00
10-20
1.20
20-30
1.40
30-40
1.80
40-50
2.00
MINIMUM R&R ENTITLEMENTS
A Comprehensive R&R Package (Second Schedule)
1. Subsistence allowance at Rs. 3000 per month per family for 12 months;
2. The affected families shall be entitled to:
(a) Where jobs are created through the project, mandatory employment for one member per
affected family or
(b) Rupees 5 lakhs per family; or
(c) Rupees 2000 per month per family as annuity for 20 years, with appropriate index for
inflation;
The option of availing (a) or (b) or (c) shall be that of the affected family
3. If a house is lost in rural areas, a constructed house shall be provided as per the Indira Awas
Yojana specifications.
If a house is lost in urban areas, a constructed house shall be provided, which will be not less
than 50sqmts in plinth area.
In either case the equivalent cost of the house may also be provided in lieu of the house as per
the preference of the project affected family;
MSPCL
Page 4
4. One acre of land to each family in the command area, if land is acquired for an irrigation
project if possible BUT the same shall be in lieu of Compensation;
5. Rs 50,000 for transportation;
6. A one-time „Resettlement Allowance‟ of Rs 50,000;
Special Provisions for SCs/STs
In addition to the R&R package, SC/ST families will be entitled to the following additional benefits:
1. Land to be given to each family in every project even in the case of irrigation projects;
2. One time financial assistance of Rs. 50,000 per family;
3. Families settled outside the district shall be entitled to an additional 25% R&R benefits;
4. Payment of one third of the compensation amount at very outset;
5. Preference in relocation and resettlement in area in same compact block;
6. Free land for community and social gatherings;
7. In case of displacement, a Development Plan is to be prepared
.8. Continuation of reservation and other Schedule V and Schedule VI area benefits from
displaced area to resettlement area.
ENHANCED ROLE FOR PANCHAYATI RAJ INSITUTIONS ESP. GRAM SABHAS
SIA in consultation with PRIs:
The Social Impact Assessment (SIA) has to be carried out in consultation with the
representatives of the Panchayati Raj Institutions (PRI)
SIA Reports To Be Shared:
Reports prepared under the Social Impact Assessment are to be shared with these individuals
in their local language along with a summary.
Representation in Expert Group:
The Expert Group has to have two members belonging to the Panchayati Raj Institutions. This
is a powerful body that has the power to reject a project. Hearings in All Gram Sabhas: In case
where an affected area involves more than one Gram Panchayat or Municipality, public
hearings shall be conducted in every Gram Sabha where more than twenty five per cent of land
belonging to that Gram Sabha is being acquired. Consent of Gram Sabha : The Consent of
Gram Sabha is mandatory for acquisitions in Scheduled Areas under the Fifth Schedule
referred to in the Constitution Representation of Panchayat Chairpersons on R&R Committee
MSPCL
Page 5
at Project Level: The Rehabilitation and Resettlement Committee at Project Level has to have
the Chairpersons of the Panchayats located in the affected area or their nominees as
representatives. Panchayat Ghars have to be provided as per the list of Infrastructural
amenities given in the Third Schedule.
Special Provisions for Farmers:
Acquisition only if necessary: The Collector has to make sure that no other unutilised lands are
available before he moves to acquire farm land. Enhanced Compensation: All farmers in rural areas
will get up to 4 times the highest sales prices in a given area. Strict Restrictions on Multi-Crop
Acquisition: The acquisition of agricultural land and multi-crop land has to be carried out as a last
resort. Consent: shall be prior-consent required from 70 per cent of land losers and those working on
government assigned lands only in the case of Public-Private Partnership projects and 80 per cent in
the case of private companies. This consent also includes consent to the amount of compensation that
shall be paid. Return of Unutilized land: Land not used can now be returned to the original owners if
the State so decides. Share in Sale of Acquired Land Increased: The share that has to be distributed
amongst farmers in the increased land value (when the acquired land is sold off to another party) has
been set at 40%.Income Tax Exemption: All amounts accruing under this act have been exempted
from Income tax and from Stamp duty.
Special Safeguards for Farmers :
Damage to crops to be included in price:
The final award has to include damage to any standing crops which might have been harmed
due to the process of acquisition (including the preliminary inspection).
Share in Developed Land: In case their land is acquired for urbanization purposes twenty per
cent of the developed land will be reserved and offered to these farmers in proportion to the
area of their land acquired and at a price equal to the cost of acquisition and the cost of
development.
Fishing Rights: In the case of irrigation or hydel projects, affected families may be allowed
fishing rights in the reservoirs, in such manner as may be prescribed by the appropriate
Government.
Reduced Role for Collector
There has been a significant reduction of the powers that the Collector enjoyed under the 1894
Act: Under the 1894 Act, the Collector had complete authority to decide what activity constituted
'public purpose'. Under the new law he has been completely stripped of this function. Public purpose
must fall strictly within the parameters prescribed under this law. The Collector cannot add or
subtract to the list given. Under the 1894 Act, the Collector could decide what quantum of
compensation could be paid to those displaced. Under the new law, there is a formula that does not
require the Collector to exercise any discretion. All he has to do is make sure that the rate is
MSPCL
Page 6
calculated as directed. Under the 1894 Act; the Collector could decide when to take possession. He
could dispossess any family by giving a moment’s notice. Now possession can only be taken once all
the requirements under the law relating to the payment of compensation, rehabilitation and
resettlement have been discharged. Under the 1894 Act, the Collector had sweeping powers to
invoke the urgency clause. What constituted an urgent situation was entirely af unction of the
Collector's interpretation. This loop hole has been plugged conclusively by limiting urgency to only
two cases-natural disasters and national defence. The Collector can no longer acquire land citing
'urgent' reasons.
Benefits for Tenants and Sharecroppers:
The Law also covers all Tenants who may not own any land but are engaged in any form of
tenancy or holding a usufructury right and;
Share-croppers Artisans who have been working in the affected area for three years prior to
the acquisition and whose primary source of livelihood stands affected by the acquisition of
land . They will receive not just the Rehabilitation and Resettlement Benefits but also a share in
the compensation to be provided.
Infrastructural Amenities under R&R (Third Schedule)
25 infrastructural amenities to be provided in the Resettlement area, including:









Schools and playgrounds;
Health Centres;
Roads and electric connections;
Assured sources of safe drinking water for each family as per Govt. norms;
Panchayat Ghars as appropriate;
Anganwadi‟s providing child and mother supplemental nutritional services as per Govt.
norms;
Places of worship and burial and/or cremation ground depending on the caste-communities at
the site and their practices;
Village level Post Offices, as appropriate, with facilities for opening saving accounts;
Fair price shops and seed-cum-fertilizer storage facilities if needed
Retrospective Effect Clause
Retrospective operation:
Where no award under Section 11 of the 1894 Act has been made, the new law will apply with
regard to compensation;
-Where an award has been made but the affected individuals have not accepted compensation
or have not yet given up possession, and the proceedings have been pending for 5years or
more, provisions of the new law will apply.
MSPCL
Page 7
-Where a majority of individuals in an affected area have not received compensation then the
new law will apply.
Compliance with other Laws
The Provisions of the New Law shall be fully compliant with other laws such as:

The Panchayats (Extension to the Scheduled Areas) Act, 1996;

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest
Rights) Act, 2006;

Land Transfer Regulations in Schedule V Areas. In fact, while the above legislations
provide for ‘consultation’ with Gram Sabhas, the new law goes one step ahead and
provides for ‘consent’.
Safeguards against indiscriminate acquisition
Social Impact Assessment made mandatory except for Irrigation Projects. To be concluded in 6
months;
•Draft Notification to include:
–Summary of SIA
–Particulars of Administrator for R&R who prepares R&R scheme
•Draft Declaration to include:
–Summary of R&R package
•No Change of Purpose: No change from the purposes specified in the Land Use Plan submitted at
the time of land acquisition will be allowed.
•Change of Ownership: No change of ownership without specific permission of Appropriate
Government is allowed;
•Land not Used: Land that is not used within 5 years in accordance with the purposes for which it
was acquired at the time of acquisition, shall be transferred to the State Government‟s Land Bank
OR to the original land owner.
•Sharing appreciated value: Upon every transfer of land without development, 40% of the
appreciated land value shall be mandatorily shared with the original owner whose land has been
acquired
MSPCL
Page 8
Transparency Provisions

Social Impact Assessment
–Gram Sabha to be consulted
–Summary of SIA notified along with Draft Notification
–SIA document made available for public scrutiny

R&R Scheme
–Summary notified along with Draft declaration
–Made available for public scrutiny
•Individual Awards passed
•Public Disclosure
–All documents mandatorily to be made available in the public domain and on the website
Penalties:
Stringent and Comprehensive Penalties Regime for Companies and Government:
• Punishment for false information, mala fide action, etc.
• Penalty for contravention of provisions of Act.
Awards:
Collector passes 2 types of Awards:
1. Award for Land Acquisition
–Award made in respect of every affected family whose land is being acquired (this will include
landless tenants as well) and containing details of LA compensation as listed in the First
Schedule;
2. Award for R&R
–Award made in respect of every affected family, regardless of whether they may be losing land
or not, containing details of R&R entitlements as listed in the Second Schedule.
Timelines:
1. Compensation will be given within a period of three months from the date of the award;
MSPCL
Page 9
2. Monetary R&R entitlements will be provided within a period of six months from the date of the
award;
3. Infrastructure R&R entitlements will be provided within a period of eighteen months from the
date of the award;
4. No involuntary displacement will take place without completion of R&R;
5. In irrigation or hydel projects, R&R shall be completed six months prior to submergence
Impact of the new law on Existing Legislations related to Land Acquisition
1. There are 13 Acts of the Central Government in force that allow for land acquisition. These are
listed in the Fourth Schedule of the Act (and include legislations relating to National Defence,
National Highways, Railways etc).The new law does not apply to the activities covered under these
Acts.
2. However, within one year, the provisions of the new Law which relate to compensation,
rehabilitation and resettlement will be applied to the 13 Acts by a notification of the Central
Government.
Flexibility given to States:
1. The sliding scale on the basis of which compensation is to be calculated (2-4 times market
value) has been left to the discretion of the State Governments
2.
Thresholds for multi-crop irrigated lands
3. Thresholds at which R&R provisions apply to private purchases
4. States are encouraged to adopt the option of “lease” instead of acquisition.
5. States are also empowered by this law to provide for benefits and safeguards that go over and
above the provisions of this law.
MSPCL
Page 10